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Evaluate the following as true, false, or uncertain, and report your reasoning. (a) If fixed costs increase long-run production will decrease. (b) Suppose we increase
Evaluate the following as true, false, or uncertain, and report your reasoning.
(a) If fixed costs increase long-run production will decrease.
(b) Suppose we increase capital by more than we increase labor, the relative marginal product of labor vs capital increases
(c) if marginal costs decrease then so does minimum efficient scale.
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